ARAMCO Report - The Mother of ALL Mortgage Blogs!

Home builder confidence

Posted by Mehran Aram on Thu, Jun 20, 2019 @ 16:06 PM

A slight gain in the confidence levels among home builders in the U.S. last month, was undone by a 2 point decline in June. Rising construction costs have long been cited as the major reason builders have been weary. Confidence levels are measured according to The National Association of Home Builders’ index.

“While demand for single-family homes remains sound, builders continue to report rising development and construction costs,” said NAHB Chairman Greg Ugalde.

In addition to grappling with rising costs, a shortage of skilled labor has also depressed confidence levels among the nation’s home builders. Despite this month’s drop, the index’s component measuring future conditions remains positive with a reading of 70.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: Construction, Home Builders, single family homes, Mortgage rates, National Association of HomeBuilders, condo, condominium, Home Builder Confidence, Home Construction

Builder confidence gets a boost

Posted by Mehran Aram on Sun, Jun 2, 2019 @ 09:06 AM

Sales of newly built homes are on the rise, giving homebuilders a boost in confidence as the rest of the housing market seems to be in a slump. Builder confidence in newly built, single-family homes rose three points in May to a reading of 66. Anything above 50 is generally considered positive however this is lower than the reading of 70 in May 2018. This latest information comes from the National Association of Home Builders/Wells Fargo Housing Market Index.

Demand for new homes continues to remain high. The index’s component measuring sales expectations for the next six months rose to a reading of 72 last month.

“This lower-interest rate environment, along with ongoing job growth and rising wages, is contributing to a gradual improvement in the marketplace,” said NAHB Chief Economist Robert Dietz.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: Housing Market, National Association of Home Builders, new homes, single family homes, NAHB, Mortgage rates, Home Builder Confidence

Home builder confidence remains flat

Posted by Mehran Aram on Fri, Apr 19, 2019 @ 05:04 AM

The confidence level among homebuilders in the U.S. appears to be holding steady even in the aftermath of the government shutdown that kicked off the year and the lackluster pace of home sales that followed.

The National Association of Home Builders/Wells Fargo Housing Market Index rose by one point to a reading of 63 in April, bolstered by low mortgage rates. Builder confidence has held steady in the low 60s for three consecutive months.

“Builders report solid demand for new single-family homes but they are also grappling with affordability concerns stemming from a chronic shortage of construction workers and buildable lots,” said NAHB Chairman Greg Ugalde. “Ongoing job growth, favorable demographics and a low-interest rate environment will help to modestly spark sales growth in the near term.”

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.125 percent, 15-year rates are near 3.625 percent and the 5-year ARM is averaging 4.00 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.

Topics: Housing Market, National Association of Home Builders, Home Builders, single family homes, Mortgage rates, Housing Affordability, housing shortage, Affordability, Home Builder Confidence